Digital Media Buying Trends Prompt Marketers to Seek New Partners
Digital media buying is set to change over the next few years. The confluence of new buying technologies and rich media and video formats means that marketers will shift more resources to purchasing digital. Forrester expects to see a compound annual growth rate in interactive display marketing of 17% in the U. S. between 2012 and 2017, a trend which is prompting enterprises to look for ways to efficiently manage their buys.
According to Forrester, spending on interactive display media format will reach $28 billion in 5 years. This year, the format will top $12.7 billion. As other research shops such as eMarketer have pointed out, much of the growth will come from video which has 23% of online display this year but will jump to 33% by 2017.
The challenge for marketers will be shifting the way they or their agencies make buys. Forrester analyst Joanna O’Connell explains that until recently, purchasing was often a negotiation and hands-on process between buyers and publishers with respect to everything from CPM rates to placements. Now, buyers are encountering acronyms like DSPs (demand-side platforms), DMPs (data management platforms), RTB (real-time bidding) and ATD (agency trading desks). It’s all a part of the Big Data trend. Marketers are learning that they can efficiently target specific audience segments and identify their behaviors. Buying with more automation in place will result in improved ROI. But, as marketers become ‘system integrators’ they’ll rely more on agency trading desks or marketing services organizations with the IT know-how to master programmatic buying.
O’Connell argues that with more access to better data, marketers will be willing to pay more as they compete for the same audiences. Average CPM prices will nearly double, going from $3.17 to $6.64 in the next 5 years. But with many services vendors operating between marketers and publishers, it seems that reps who sell digital media may see their role diminished, or greatly changed, in this process.[Sources: O’Connell, Joanna. Future of Digital Media Buying. Blogs. Forrester.com. Web. 22 Oct. 2012. Sullivan, Laurie. Data, Program Buying. Mediapost.com. 9 Oct. 2012. Web. 22 Oct. 2012]